It’s been an interesting year for gold bugs so far. Prices for the precious yellow metal have bounced up and down as economic data, political uncertainty, and conflicting predictions have had gold on a wild ride.
After a steady decline in the first four months, gold prices began a steady climb to levels not seen in over two years, and at the time of writing this article, some predictions forecast a level not seen in six years or more. Other prognosticators aren’t so sure.
One recent week a top financial news organization had over a dozen “expert” articles advising gold investors to dive in, cash out, and sit tight. So what’s a rational approach?
Hedge Your Bet with Collectible Gold
Long-term investors know that gold is a historically sound store of wealth. But the long term can be longer than you want. Over the last ten years, gold has fluctuated wildly from a low of $1100 an ounce to a peak at over $2000. That’s a swing of nearly $1000 an ounce or almost 100%.
If that’s more than your stomach can take, consider adding an extra layer of protection by investing in collectible gold coins.
An Added Layer of Opportunity
Gold coins will always have intrinsic value from their gold content. But since they are also collectible objects, they have numismatic value too. That’s the premium added by its desirability to collectors. It will vary based on factors like rarity, condition, and desirability, of course, but a coin’s collectible value seldom goes down even when its metal content does. In fact, for many coins, the numismatic value exceeds its bullion content, sometimes by a great deal.
Gold Coins as a Long-Term Investment
Today’s dollar has lost 84 cents of buying power since 1971. With compounding interest or rising stock and real estate prices, a dollar invested 45+ years ago may have gained some of that loss back by now—it may have even beat inflation. Or it may have not. One thing is certain, over that same period, gold has maintained its value. That’s why many people look to gold as a good long-term investment.
Of course, gold prices can fluctuate in the short term, but short-term investing is speculative, which is a polite way to say gambling. On the other hand, long-term investors look for things that have a history of holding their value, and gold is one of the best. Plus, since 1997, you can hold gold coins in a retirement account.
Gold coins are also easy to handle, store, and spend should the need arise.
Gold Coins for Collections
Gold bullion coins are made for their metal value and are not generally sought by collectors. On the other hand, many gold coins are produced with added collectible value, both actual and personal. Some have both. For instance, along with the U.S., China and Australia have several gold coins of different designs, and people are willing to pay a premium to add them to their collections. Or they may collect them as mementos of travel or special occasions. Like art or antiques, prices for collectible coins are subject to market whims, but a gold coin’s bullion value will always be there.
The Great American Coin Company® is pleased to offer collectible US gold coins rated as Mint State by PCGS and NGC, the most respected coin grading services. Collectible foreign gold coins from Australia, Canada, China, and South Africa are also available for a truly diversified collection. Demand for these beautiful coins is high, so shop now while the selection is good.
Investors, collectors and gift-givers alike are invited to shop the wide selection of collectible U.S. coins and paper money as well as currency from around the world offered by The Great American Coin Company. We keep adding items as they become available, so be sure to visit us frequently.
